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Carbon Emission Reduction Effects of the Digital Economy: Mechanisms and Evidence from 282 Cities in China

Author

Listed:
  • Ziyu Meng

    (College of Business, City University of Hong Kong, Hong Kong 999077, China
    These authors contributed equally to this work.)

  • Wen-Bo Li

    (School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
    These authors contributed equally to this work.)

  • Chaofan Chen

    (School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China)

  • Chenghua Guan

    (School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
    Center for Innovation and Development Studies, Beijing Normal University at Zhuhai, Zhuhai 519087, China)

Abstract

The digital economy has great potential to boost innovation and social productivity, and it plays an important role in helping to achieve carbon peak and carbon neutrality. This study focuses on analyzing and testing the role of the digital economy in promoting carbon reduction in Chinese cities. Based on panel data of 282 cities in China from 2011 to 2019, this study measured the development level of the digital economy and carbon emission intensity by constructing a digital economy development level evaluation index system and a carbon emission inversion model, respectively. It was found that the digital economy can significantly reduce urban carbon emissions by promoting industrial structure upgrading and green innovation, and the digital economy will have a more obvious promotion effect on urban carbon emission reduction over time. This conclusion was found to be valid after we performed robustness tests such as the instrumental variable method, quasi-experimental analysis, and placebo test. Furthermore, heterogeneity analysis showed that eastern, regenerative, and provincial capital cities are better able to promote carbon emission reduction under the development of the digital economy. This study provides new empirical evidence at the city level for developing the digital economy to reduce urban carbon emissions and acts as a useful reference for developing countries to realize “smart carbon emission reduction”.

Suggested Citation

  • Ziyu Meng & Wen-Bo Li & Chaofan Chen & Chenghua Guan, 2023. "Carbon Emission Reduction Effects of the Digital Economy: Mechanisms and Evidence from 282 Cities in China," Land, MDPI, vol. 12(4), pages 1-21, March.
    • Handle: RePEc:gam:jlands:v:12:y:2023:i:4:p:773-:d:1110612
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    Cited by:

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    2. Congqi Wang & Rui Zhang & Haslindar Ibrahim & Pengzhen Liu, 2023. "Can the Digital Economy Enable Carbon Emission Reduction: Analysis of Mechanisms and China’s Experience," Sustainability, MDPI, vol. 15(13), pages 1-20, June.
    3. Lu Liu & Yuxin Meng & Qiying Ran, 2023. "The Impact and Mechanism of the Digital Economy on Carbon Emission Efficiency: A Perspective Based on Provincial Panel Data in China," Sustainability, MDPI, vol. 15(19), pages 1-15, September.
    4. Hongfeng Zhang & Xiangjiang Ding & Yue Liu, 2023. "The Impact of Low-Carbon Pilot Cities on the Development of Digital Economy: Empirical Evidence from 284 Cities in China," Sustainability, MDPI, vol. 15(13), pages 1-21, June.
    5. Liu, Yajun & Zhang, Xiuwu & Shen, Yang, 2024. "Technology-driven carbon reduction: Analyzing the impact of digital technology on China's carbon emission and its mechanism," Technological Forecasting and Social Change, Elsevier, vol. 200(C).

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